Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Deletion of Rule 702, Carrying Accounts, 3306-3307 [E8-733]

Download as PDF 3306 Federal Register / Vol. 73, No. 12 / Thursday, January 17, 2008 / Notices effect through December 31, 2007. By offering a monthly cap of the Firm Facilitation Fee, the Exchange hoped to garner additional order flow from market participants that were attracted to the competitive fee structure. The Exchange offered this fee cap on a limited pilot basis in order to measure its effectiveness and then make a determination whether to adopt it on a permanent basis. After analyzing the effectiveness of the fee cap during the Pilot, the Exchange determined that the Pilot did not meet its stated objectives, and therefore the Exchange did not extend the program. The program expired on December 31, 2007. The Exchange now plans to revise the Schedule to remove the reference to the Pilot Program. 2. Statutory Basis The Exchange believes the proposal is consistent with Section 6(b) of the Act 6 in general, and Section 6(b)(4) of the Act 7 in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among its members. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action mstockstill on PROD1PC66 with NOTICES The foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b–4(f)(2) 9 thereunder, because it establishes or changes a due, fee, or other charge imposed on members by the Exchange. Accordingly, the proposal is effective upon filing with the Commission. At any time within 60 days of the filing of the proposed rule change, the Commission changes related to the Firm Facilitation Fee. This filing serves only to amend the Schedule by removing the reference to the fee cap, and proposes no other changes to the application of the Firm Facilitation Fee. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). VerDate Aug<31>2005 17:07 Jan 16, 2008 Jkt 214001 may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEArca–2008–02 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEArca–2008–02. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR–NYSEArca–2008–02 and PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 should be submitted on or before February 7, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–792 Filed 1–16–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57134; File No. SR–Phlx– 2005–68] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Deletion of Rule 702, Carrying Accounts January 11, 2008. I. Introduction On November 9, 2005, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and 19b–4 thereunder,2 a proposal to delete Phlx Rule 702. regarding Carrying Accounts. Phlx filed Amendment No. 1 to the proposed rule change on January 18, 2007. Notice of the proposal, as amended, was published for comment in the Federal Register on February 14, 2007.3 The Commission received no comments regarding the proposal. This order approves the proposed rule change, as amended. II. Description of the Proposal The purpose of the proposed rule change to delete Rule 702, Carrying Accounts, is to eliminate an unnecessary and confusing Exchange rule. Currently, Rule 702 provides that ‘‘[n]o member, doing business as an individual, shall carry accounts for customers, except as provided in Rule 903.’’ 4 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Exchange Act Release No. 55256 (Feb. 8, 2007), 72 FR 7106 (Feb. 14, 2007). 4 The reference to Rule 903 is clearly an incorrect reference which should be to Rule 904, Use of a Partnership Name, which provides that ‘‘[n]o member shall conduct business under a partnership firm name unless he has at least one general partner, provided, however, that if by death or otherwise a member becomes the sole general partner in a member organization that is a partnership he may continue business under the 1 15 E:\FR\FM\17JAN1.SGM 17JAN1 3307 Federal Register / Vol. 73, No. 12 / Thursday, January 17, 2008 / Notices Rule 702 is unnecessary because a Phlx member’s ability to carry customer accounts is dictated by its ability to comply with relevant securities laws and regulations, including Exchange Act Rules 15c3–1 and 15c3–3, which do not make distinctions on the basis of a broker-dealer’s organizational and corporate structure. Rule 702 creates confusion because virtually all ‘‘members’’ are individuals. The term ‘‘member’’ (as opposed to ‘‘member organization’’) is defined in Exchange Rules as a permit holder which has not been terminated in accordance with the by-laws of the Exchange.5 Currently, the only issued and outstanding Exchange permits are Series A–1 Permits, the terms and conditions of which are governed by Rule 908. Among other things, section (b) of Rule 908 provides that a Series A– 1 permit shall only be issued to an individual.6 Pursuant to Rule 908, all Series A–1 permit holders must maintain an affiliation with a ‘‘member organization,’’ which are not subject to Rule 702. III. Discussion The Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.7 In particular, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act, which requires, among other things, that the rules of an exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market, and, in general, to protect investors and the public interest. The Commission believes it is reasonable and consistent with the Act for the Exchange to eliminate an unnecessary and confusing Exchange rule. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (File No. SR– Phlx–2005–68) be and hereby is approved. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–733 Filed 1–16–08; 8:45 am] BILLING CODE 8011–01–P SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed Request and Comment Request The Social Security Administration (SSA) publishes a list of information collection packages that will require clearance by the Office of Management and Budget (OMB) in compliance with Public Law (Pub. L.) 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. The information collection packages included in this notice are for new information collections, revisions to OMB-approved information collections and extensions (no change) of OMBapproved information collections. SSA is soliciting comments on the accuracy of the Agency’s burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility and clarity; and how to minimize the burden on respondents, including the use of automated mstockstill on PROD1PC66 with NOTICES Respondents who do not have to provide parents’ SSNs .......................................................... Respondents who are asked to provide parents’ SSNs (for application for original SSN cards for children under age 18) ....................................................................................................... Applicants age 12 or older who need to answer additional questions so SSA can determine whether an SSN was previously assigned .............................................................................. VerDate Aug<31>2005 17:07 Jan 16, 2008 Jkt 214001 the Exchange, * * * and to conduct business on the Exchange as provided in these By-Laws and such rules.’’ 6 Rule 908 does contain one exception, which is not relevant to this analysis, that provides that a Series A–1 Permit may also be issued to ‘‘a corporation meeting the requirements of Section 12–4 of the By-Laws.’’ Section 12–4 of the By-Laws, Admission of Corporation, provides that ‘‘[a] corporation may be issued a permit by the Exchange, provided such corporation is incorporated under the laws of the Commonwealth PO 00000 Frm 00080 (OMB), Office of Management and Budget, Attn: Desk Officer for SSA, Fax: 202–395–6974, E-mail address: OIRA_Submission@omb.eop.gov. (SSA), Social Security Administration, DCBFM, Attn: Reports Clearance Officer, 1333 Annex Building, 6401 Security Blvd., Baltimore, MD 21235, Fax: 410–965–6400, E-mail address: OPLM.RCO@ssa.gov. I. The information collections listed below are pending at SSA and will be submitted to OMB within 60 days from the date of this notice. Therefore, your comments should be submitted to SSA within 60 days from the date of this publication. You can obtain copies of the collection instruments by calling the SSA Reports Clearance Officer at 410– 965–0454 or by writing to the address listed above. Application for a Social Security Card—20 CFR 422.103–.110—0960– 0066. Forms SS–5 (used in the United States) and SS–5–FS (used outside the United States) are to apply for original and replacement Social Security cards. Revisions are being made to the race/ ethnicity question of the form to reflect OMB standards; additionally, several other minor changes are being made to the form’s instructions. The respondents are applicants for original and replacement Social Security cards. Type of Request: Revision to an OMBapproved information collection. Number of annual respondents Application scenario partnership name for such period as may be allowed by the Committee.’’ 5 See Exchange By-Law Article I, Section 1(t) and Exchange Rule 1(n). Exchange By-Law Article XII, Section 1(b) provides in part that ‘‘[e]xcept as otherwise set forth in the rules of the Exchange or any resolution of the Board of Governors authorizing a specific class or series of permits, a permit will confer upon and subject the holder thereof to all the privileges and obligations of a member pursuant to these By-Laws and the rules of collection techniques or other forms of information technology. Written comments and recommendations regarding the information collection(s) should be submitted to the OMB Desk Officer and the SSA Reports Clearance Officer. The information can be mailed, faxed or e-mailed to the individuals at the addresses and fax numbers listed below: Fmt 4703 Sfmt 4703 Completion time Burden hours 13,000,000 81⁄2 1,841,667 540,000 9 81,000 40,000 91⁄2 6,333 of Pennsylvania, and all of its capital stock is owned by the Exchange.’’ This By-Law provision was intended to permit Exchange membership for the Exchange’s subsidiary, Stock Clearing Corporation of Philadelphia. 7 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 8 15 U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). E:\FR\FM\17JAN1.SGM 17JAN1

Agencies

[Federal Register Volume 73, Number 12 (Thursday, January 17, 2008)]
[Notices]
[Pages 3306-3307]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-733]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57134; File No. SR-Phlx-2005-68]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval of a Proposed Rule Change and Amendment No. 1 
Thereto Relating to Deletion of Rule 702, Carrying Accounts

January 11, 2008.

I. Introduction

    On November 9, 2005, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission''), pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and 19b-4 
thereunder,\2\ a proposal to delete Phlx Rule 702. regarding Carrying 
Accounts. Phlx filed Amendment No. 1 to the proposed rule change on 
January 18, 2007. Notice of the proposal, as amended, was published for 
comment in the Federal Register on February 14, 2007.\3\ The Commission 
received no comments regarding the proposal. This order approves the 
proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Exchange Act Release No. 55256 (Feb. 8, 2007), 72 FR 7106 
(Feb. 14, 2007).
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II. Description of the Proposal

    The purpose of the proposed rule change to delete Rule 702, 
Carrying Accounts, is to eliminate an unnecessary and confusing 
Exchange rule. Currently, Rule 702 provides that ``[n]o member, doing 
business as an individual, shall carry accounts for customers, except 
as provided in Rule 903.'' \4\
---------------------------------------------------------------------------

    \4\ The reference to Rule 903 is clearly an incorrect reference 
which should be to Rule 904, Use of a Partnership Name, which 
provides that ``[n]o member shall conduct business under a 
partnership firm name unless he has at least one general partner, 
provided, however, that if by death or otherwise a member becomes 
the sole general partner in a member organization that is a 
partnership he may continue business under the partnership name for 
such period as may be allowed by the Committee.''

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[[Page 3307]]

    Rule 702 is unnecessary because a Phlx member's ability to carry 
customer accounts is dictated by its ability to comply with relevant 
securities laws and regulations, including Exchange Act Rules 15c3-1 
and 15c3-3, which do not make distinctions on the basis of a broker-
dealer's organizational and corporate structure.
    Rule 702 creates confusion because virtually all ``members'' are 
individuals. The term ``member'' (as opposed to ``member 
organization'') is defined in Exchange Rules as a permit holder which 
has not been terminated in accordance with the by-laws of the 
Exchange.\5\ Currently, the only issued and outstanding Exchange 
permits are Series A-1 Permits, the terms and conditions of which are 
governed by Rule 908. Among other things, section (b) of Rule 908 
provides that a Series A-1 permit shall only be issued to an 
individual.\6\ Pursuant to Rule 908, all Series A-1 permit holders must 
maintain an affiliation with a ``member organization,'' which are not 
subject to Rule 702.
---------------------------------------------------------------------------

    \5\ See Exchange By-Law Article I, Section 1(t) and Exchange 
Rule 1(n). Exchange By-Law Article XII, Section 1(b) provides in 
part that ``[e]xcept as otherwise set forth in the rules of the 
Exchange or any resolution of the Board of Governors authorizing a 
specific class or series of permits, a permit will confer upon and 
subject the holder thereof to all the privileges and obligations of 
a member pursuant to these By-Laws and the rules of the Exchange, * 
* * and to conduct business on the Exchange as provided in these By-
Laws and such rules.''
    \6\ Rule 908 does contain one exception, which is not relevant 
to this analysis, that provides that a Series A-1 Permit may also be 
issued to ``a corporation meeting the requirements of Section 12-4 
of the By-Laws.'' Section 12-4 of the By-Laws, Admission of 
Corporation, provides that ``[a] corporation may be issued a permit 
by the Exchange, provided such corporation is incorporated under the 
laws of the Commonwealth of Pennsylvania, and all of its capital 
stock is owned by the Exchange.'' This By-Law provision was intended 
to permit Exchange membership for the Exchange's subsidiary, Stock 
Clearing Corporation of Philadelphia.
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III. Discussion

    The Commission finds that the proposed rule change, as modified by 
Amendment No. 1, is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\7\ In particular, the Commission finds that the proposal is 
consistent with Section 6(b)(5) of the Act, which requires, among other 
things, that the rules of an exchange be designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market, and, in general, to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    The Commission believes it is reasonable and consistent with the 
Act for the Exchange to eliminate an unnecessary and confusing Exchange 
rule.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-Phlx-2005-68) be and 
hereby is approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-733 Filed 1-16-08; 8:45 am]
BILLING CODE 8011-01-P